By Kosaku Narioka
Omron shares fell sharply after the Japanese electronics maker cut its fiscal-year earnings guidance, citing weaker investment activities for chips and electric vehicles and China's economic slowdown.
Shares were recently 15% lower at 5,551 yen on Tuesday morning.
Omron said after Monday's market close that it expects net profit to fall 98% to Y1.50 billion ($10.1 million) for the year ending March, down from its previous projection of Y18.0 billion in net profit.
It projected fiscal-year revenue to drop 7.5% to Y810.00 billion, down from its previous forecast of Y850.00 billion.
Omron said weak demand for semiconductor-related investment is weighing on its industrial automation business, and demand for capital investment for EVs and rechargeable batteries would be lower than previously projected.
A slowdown in the Chinese economy would also weigh on demand for general-purpose equipment and other products, it said.
For the nine months ended Dec. 31, net profit dropped 84% to Y7.85 billion as revenue fell 4.7% to Y607.985 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
02-05-24 2230ET